Marketing Performance Research On Foreign Investment In China

Since reform and opening up for 30 years, foreign investment has been playing an major role on China's economy sustained, rapid growth. However, with the expand of using foreign capital in China, China is also facing a new situation:For instance, the driving forces of the introduction of foreign capital to make up for the development of a funding gap has decayed; and the same time, some negative problems of using foreign capital become more prominent, such as the transnational monopolies, energy consumption and environmental pollution and so on. In this case, the academic community begins to reflect and debate on the actual results of attracting foreign investment, foreign investment in China's economic role and the other important issues, therefore, China must continue to maintain the large-scale foreign investment or not has become critical issue.On the basis of previous studies, first this paper reviewed the studies of foreign investment in domestic and foreign scholars; secondly, this paper analyzed and summarized the stage and characteristics of foreign investment, and then introduced foreign capital's effects of China's economic development from the positive and negative aspects. As the function of foreign investment on China's macro-economic is weakening, therefore we should take the foreign-funded enterprises as an integral part of Chinese enterprises to review foreign capital to China's market performance on competitive environment. Thus, this paper put forward a theoretical analysis that foreign capital will help improve market performance, and select the efficiency of resource allocation, economies of scale and technological innovation as an indicator of market performance evaluation; then used the relevant equipment manufacturing industry data during the year 1999-2007 to study the relations between foreign investment and the three indicators of market performance through regression analysis. The results showed that with increase of foreign investment, the three indicators have played a catalytic role, but different growth trends. Thus, this paper uses the grade evaluation analysis, gives the weight to the three indicators to calculate the integrated market performance scores, and then observe the impact of the overall trend. Finally, empirical results shows that foreign investment has been playing an important role in improving the Chinese marketing performance, so we should further step up efforts to attract foreign investment, but at the same time we also noticed that some problems, such as the hollowing out of core technologies, irrational industrial structure; and other negative effects behind the interests of foreign capital, such as monopoly, environmental issues, and this paper gives corresponding countermeasures and suggestions.